Boston Consulting Group Global Wealth Report 2022: $530 Trillion Assets, Top 3 Booking Centres Switzerland, Hong Kong & Singapore
15th July 2022 | Hong Kong
Boston Consulting Group (BCG) has released the Global Wealth Report 2022, with global financial wealth & real asset growing to $530 trillion in 2021 (2020 to 2021: +10.6%, + $26 trillion). Physical goods in the form of real estate, wine, art, watches, and related holdings accounted for 50% of total wealth pool, growing to $256 trillion (2020 to 2021: +9.4%, +$22 trillion). In 2021, Switzerland is the largest financial booking centre with $2.5 trillion, Hong Kong at 2nd with $2.3 trillion and Singapore at 3rd with $1.5 trillion. BCG forecasts for 5 years (2026): Potential de-stabilizers caused by inflation and Russia’s invasion of Ukraine, key reviews on Sustainable Investing / Net Zero, Crypto opportunity and Non-Traditional Wealth Managers vs Digital Wealth Managers. View: BCG Global Wealth Report 2022
“ $530 Trillion Assets, Top 3 Booking Centres Switzerland, Hong Kong & Singapore “
Boston Consulting Group Global Wealth Report 2022
Key Findings:
- Global financial wealth & real asset: $530 trillion in 2021 (+10.6%, $26 trillion)
- Physical goods in the form of real estate, wine, art, watches, and related holdings: $256 trillion (+9.4%, $22 trillion), 50% of total wealth pool
- Potential de-stabilizers: Inflation and Russia’s invasion of Ukraine
- Asia-Pacific could become home to nearly 25% of the world’s wealth by 2026.
Global Wealth: 2021, 2026
- Financial Wealth: $274 trillion, $355 trillion
- Real Assets: $255 trillion, $328 trillion
- Liabilities: -$57 trillion, -$74 trillion
The Financial Booking Center Landscape – Top 10 Cross Border Financial Center Wealth (2021)
- Switzerland: $2.5 trillion
- Hong Kong: $2.3 trillion
- Singapore: $1.5 trillion
- United States: $1.1 trillion
- Channel Islands & Isle of Man: $600 billion
- UAE: $600 billion
- UK: $500 billion
- Luxembourg: $400 billion
- Monaco: $300 billion
- Liechtenstein: $200 billion
Hong Kong forecast to replace Switzerland as the world’s largest booking center in 2023.
Cross Border Financial Centers:
Forecast 2026:
- Sustainable Investing / Net Zero: Increase to 8% to 17% of private wealth (Today 4% to 11%)
- Crypto Opportunity: $2 trillion market capitalization, forecasts growth of 4x to 5x by 2030 despite recent bearish sentiment.
- Non-traditional Wealth Managerscurrently manage as much as $0.8 trillion to $1.0 trillion in crypto-related wealth
- Cryptocurrencies Account for About 90% of All Crypto Assets
- Crypto Assets: NFTs, Crypto mutual funds, Cryptocurrency ETFs, Crypto stock/equity ETFs, Stablecoins, Altcoins, Ethereum, Bitcoin
Digital Wealth Managers command a significant market premium
- Valuation multiples, based on price over AUM, are 6x / 7x higher than traditional Wealth Management
- Customizable Discretionary Mandates
- Access to a Wider Array of Investment Opportunities (Private equity, private debt and pre-IPO participation)
- Hybrid Models That Bring the Best of Digital and Human Advice
- A New Approach to Client Acquisition
- Almost Zero Operations
Traditional vs Digital Wealth Managers:
Traditional vs Digital Wealth Managers AUM Multiples:
BCG Wealth Segment:
- Retail: from $0 to $250,000
- Affluents: from $250,000 to $1 million
- High-net-worth individuals: from $1 million to $100 million
- Ultra-high-net-worth individuals: more than $100 million
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